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After Chapter 13 Fell Off...

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    After Chapter 13 Fell Off...

    As our Chapter 13 was coming up on the seventh anniversary after filing I was unable to find concrete information on what would happen to our credit score. Here is our situation:

    We filed Chapter 13 in early 2009, with discharge after 36 payments in early 2012. Earlier this year the Chapter 13 fell off, all negative items associated with the BK fell off, and our credit scores went from an average of 705 FICO to 780 FICO (scores directly from www.myfico.com, so we are comparing apples with apples).

    At least in our case, the "rebucketing" (google it) did not seem to apply. This was an exceedingly long road, but we have finally reached it's conclusion. Lots of lessons learned, and our main goal financially is not to allow ourselves to be in the same situation again.

    Good luck to all - this website was a huge help as we navigated the many ups and downs (financially, emotionally, etc.).
    Filed March 4, 2009
    341 April 14, 2009
    Confirmed May 25, 2010!!!

    #2
    Great to hear! Did you do any rebuilding after discharge? Mine is set to fall off in Feb 2017 and also curious to see the impact.
    Chapter 13 - 100% Payback - Filed 2/2010 - Discharged 4/2014

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      #3
      Hi Drew - apologies for not getting back to you sooner. With a focus on the future I haven't been on the website in quite a period of time.

      Since we have already focused on not missing payments, the next biggest impact on our credit scores since then is keeping utilization low. We have done this by paying mostly in cash/debit, but also by requesting a credit line increase from our credit card holders every six months. This has had the long-term result of approx $150K in available credit line across 5 credit cards opened at a rate of about one per year. This makes it easy to maintain a ratio of less than 5% (or $7,500).

      I don't foresee opening any more cards, but I will continue to request increases every six months. I've had most success with requesting a $3K increase which has added up significantly over time. My wife and I currently have scores between 795 and 810 depending on whether I remember to pay off the credit card BEFORE the statement is generated.
      Filed March 4, 2009
      341 April 14, 2009
      Confirmed May 25, 2010!!!

      Comment

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